Internet2k4

Why I Bought Corporate High Yield Fund This Morning (CEF: COY)

Assuming Andy So is right in timing a junk bond revival, why this fund? Fully agree that the payout drop is a red flag. PCN yielding 8.2% has held up better in the adverse market and its MER is 1.1% v.s. 2.2% for COY. The difference from COY's 8.9% yield is less than that MER gap. Sometimes a NAV discount is a fire sale price for a fund that's burning down, and sometimes that premium is for higher octane.